The gender pay gap signifies the earnings difference between men and women in similar job roles, with women earning approximately 84% of what men do in the U.S. This disparity not only impacts individuals and families but also has broader societal implications, including poverty and hindered economic growth. A recent study in the Quarterly Journal of Economics highlights how men’s greater risk tolerance and salary expectations influence job acceptance and outcomes, contributing to this gap. Women tend to accept job offers more quickly than men, who are more inclined to negotiate for higher salaries. Research examining graduates from Boston University’s business school revealed that women accepted jobs about a month earlier than men, though the gender earnings gap in accepted offers decreased over time.
The findings suggest that differences in risk preferences and salary expectations play a crucial role, accounting for roughly 30% of the discrepancy in early career earnings between genders. The study indicates that these traits lead women to accept lower-paying offers sooner, ultimately perpetuating the gender pay gap. Understanding these behaviors is essential for addressing the underlying causes of discrepancies in earnings.
